It turns out the biggest driver of gold prices wasn't Peter Schiff, but someone else! Looking back at this year, gold has delivered an unusually strong A+ performance. The price of gold has risen by approximately 63%, reaching a new high since 1979, bringing this ancient asset back into the mainstream of global financial markets. Gold is no longer just a synonym for safe-haven assets; it has even become the most watched investment target on Wall Street, besides fiat currency and Bitcoin. The continuous record highs in gold prices and its status as a news focus are unprecedented, dating back to the 1970s period of high inflation and geopolitical turmoil. However, today's gold price surge is not just driven by inflation or war, but by a more complex political science. According to a Bloomberg analysis, a key political figure has essentially driven up gold prices. Should we thank him? This article is excerpted from Bloomberg Television's extended perspective.
Why Trump? Political risk translates into a gold premium.
Among the many factors driving gold prices higher in 2025, it is no coincidence that Trump's name has repeatedly appeared in the news. For the financial markets, Trump is not a "policy maker" in the traditional sense, but a formidable figure with high uncertainty, and gold is precisely the asset most sensitive to and most honest about uncertainty.
White House factors and policy uncertainty
The market generally believes that the strength of gold in 2025 is highly correlated with US politics. Since the Trump 2.0 administration took office, there has been frequent talk about monetary policy, trade, fiscal deficits, and the value of the dollar. From "currency devaluation" to revisiting ideas similar to the "Mar-a-Lago Agreement," all of these have shaken the market's confidence in the long-term financial order. When policy signals become unpredictable, gold naturally becomes a safe haven for funds.
Gold regains its status as a top asset due to Trump's volatile policies.
First, Trump's policy style inherently increases "tail risk." Whether it's the sudden escalation of the trade war, the threat of sanctions against allies and adversaries, or the public pressure on the Federal Reserve and questioning the legitimacy of a strong dollar, the market has developed a tacit understanding: under Trump's administration, existing rules can be rewritten at any time. This uncertainty about the rules is precisely the most important source of gold's risk premium.
Secondly, Trump's stance on a "weak dollar" directly impacts the pricing foundation of gold. Since gold is priced in US dollars, any doubt about the dollar's long-term purchasing power will naturally translate into demand for gold. The market doesn't need to actually see a significant depreciation of the dollar; as long as policy rhetoric begins to lean towards "trade competitiveness," "the instrumentalization of tariffs," or "currency as a bargaining chip," investors will adjust their asset allocations in advance. This is why mere policy rumors surrounding the White House are enough to drive up gold prices.
Third, Trump's fiscal policy has strengthened the imagination surrounding "debt monetization." Tax cuts, expansionary fiscal policy, and impatience with high interest rates combine to make the market more likely to believe that the future solution to the debt problem may not be deflation, but rather inflation or currency devaluation. In this narrative, the attractiveness of holding long-term fixed-income assets decreases, while gold, an undiluted tangible asset, becomes a natural beneficiary.
Fourth, geopolitical re-pricing is also closely related to Trump. He tends to "transfer" diplomatic relations, using tariffs, sanctions, and security commitments as negotiating tools. While this approach may achieve political goals in the short term, it increases friction in global financial markets. For central banks, this means increased political risk to foreign exchange reserves; for investors, it means a reassessment of the value of "risk-free assets," and gold is one of the few suitable options.
Finally, the Trump effect also reflects the contagious effect of narrative. Trump's policies not only immediately affect the market, but also cause all other assets to react with volatility immediately. When more and more analysts, central banks and large institutions regard "Trump's return" as a structural bullish factor for gold, this view itself will attract more funds to enter the market in advance, thereby strengthening the price trend. Gold is therefore not just passively reflecting political risk, but becomes a concrete manifestation of the financialization and pricing of political risk.
Overall, Trump's push for higher gold prices is not due to a single policy, but rather to his governance style and worldview, which have shaken market confidence in currency, order, and predictability. In this environment, gold has once again been chosen as the most direct tool to combat institutional uncertainty.
This article reveals that the key player driving the 2025 gold price surge was actually him! It first appeared on ABMedia ABMedia .
